The pair looks "Slightly Bullish" and "Extremely Oversold" according to the FXstreet.com technical studies in its 15 minutes time frame. In the near time, "near-term upside may be
limited. But over the medium term we still see value in this trade," comments the RBS analyst team. "Particularly as we expect Japan to maintain a persistent structural trade deficit."
But taken that "domestic data continues to disappoint, with very weak machine orders and a lower current account surplus for May," continues RBS. "The worsening trade balance weighed on the current account and keeps us negative on JPY in the medium-term."
"While we expect the BoJ to leave policy on hold in July," adds RBS. "The MoF/BoJ is likely to be wary of sustained JPY strength."